Resolv Liquidity Pool

Resolv Liquidity Pool (RLP) is a leveraged delta-neutral strategy token that functions as the junior tranche within Resolv protocol. As a dedicated protection layer for the USR stablecoin, RLP absorbs residual risks and, in return, offers leveraged yield opportunities to users with a higher risk appetite.

RLP is fully transparent and on-chain, with users able to mint and redeem RLP tokens 1:1 against deposited collateral. As RLP acts as a buffer for potential losses from funding rate volatility, exchange exposure, or execution risks, it ensures that USR holders are insulated from adverse events. Losses, if any, are absorbed solely by RLP holders in Resolv protocol.

RLP’s yield is derived from three primary sources: funding fees earned from short perpetual futures positions, staking rewards from ETH-based assets held in the treasury, and a risk premium allocated to RLP holders for assuming system risk.

By segregating risk and offering market-based compensation, RLP enables Resolv protocol to maintain USR’s peg with overcollateralization. At the same time, it provides a transparent, high-return opportunity for users who are comfortable with volatility and want to participate in a new category of yield-bearing DeFi instruments.